AR 2015-16 Outlook

8.1 Background

In 2015-16, CenITex had greater certainty in planning for its future due to the Business Support Services Strategic Review’s recommendation that CenITex would continue to deliver critical, secure processing and information management services to support Government departments. 

This certainty allowed CenITex to better focus on optimising existing infrastructure and improving processes related to service and project delivery. 

As a result, during the past year further cost savings and efficiencies have been achieved and in light of these efficiency gains, CenITex will deliver a 5 per cent reduction in prices for all services in its Service Catalogue in 2016-17.

8.2 The future

CenITex’s key strategic goal as outlined in the Corporate Plan 2016/17 – 2018/19 is to deliver customer-focused ICT services that support a modern, agile and productive public service. 

As the primary supplier of shared ICT infrastructure for the Victorian public sector, CenITex provides the services and support needed to ensure our customers stay operating and connected 24x7. We develop and deliver essential ICT infrastructure at a level of cost and quality that individual departments working alone could not achieve.

Victoria Government departments have diverse and complex needs, requiring a robust and agile ICT provider to help them deliver core services to the public. To better meet the needs of our customers, CenITex is transitioning to the role of a customer-focused integrator. 

This transition will enable greater choice for customers through more competitive service offerings enhancing their ability to meet their business objectives at reduced cost. CenITex service quality will remain high and further improve. 

The adoption of this approach will also see CenITex staff engaged, current levels of customer service and performance improve, services become more contemporary and costs reduced in line with customer expectations. The aim is also to increase CenITex’s customer base, which will deliver additional efficiencies and cost benefits to existing customers by leveraging increased scale.

Operating in an environment of competitive tension and with our customers having the choice to work with us or with other providers, CenITex will work to improve customer service, increase efficiency and competitively price our offerings. In view of this, our Corporate Plan also has a strong focus on prices and investment, as well as security. 

Prices for every service in our catalogue will drop by 5 per cent in 2016-17 and CenITex will absorb Consumer Price Index (CPI) and Enterprise Bargaining Agreement (EBA) related cost increases, delivering a real saving to customers of about 7.5 per cent. 

The aim is to end each year with a small surplus, with the majority of CenITex revenue being used to directly support service delivery to customers, developing new services in response to customer demand and investing in areas that allow for a reduction in the cost of services. 

CenITex aspires to be a centre of excellence for IT security within Victorian Government and the CenITex Board has allocated an additional $6 million over the next three years for a Security Uplift Program to increase security capability and mitigate risks across the Government Shared Platform. 

To meet customer demands and expectations, CenITex will respond to the following challenges and opportunities:

  • transforming our service delivery model and culture to embrace customer service, cloud and mobile technologies, and agile and lean methodologies
  • reducing the time taken to provide proposals to customer project requests and introduce improved project reporting
  • growing our customer base to increase scale to enable lower costs for our current customers
  • enabling customers who are in separate ICT environments to utilise the Government Shared Platform to maximise standardisation, connectivity, integration and efficiencies of shared services
  • successfully partnering with market-based service providers to deliver more contemporary and cost effective ICT services
  • continuing to deliver reliable shared ICT services essential to our customers while we undergo change.

8.3 Our focus

To ensure CenITex is best positioned to meet these challenges and opportunities, its key strategic objectives are to:

  • Improve service quality and drive down costs
  • Drive a focus on customer service and grow our customer base
  • Build a high performing and engaged organisation by investing in our people
  • Embrace innovation and rapidly introduce new ICT services
Strategic Objective   Approach   Outcome   Target

Improve service quality and drive down costs
 
  • lower service costs to align to market-based costs, without impacting quality
  • provide interactive reports enabling customer measurement of our performance across agreed criteria and monitoring of service consumption
  • establish a Strategic Program Management Office and apply lean and agile methodologies to improve project delivery.
  • restructure service offerings, aligning prices to underlying costs and release a new Services Catalogue.
  • deliver against $2m of initiatives prioritised by our customers in Year 1 of our Security Uplift Program.
 
Service availability greater than 99%

Tableau-based interactive service reports available to customers

New Services Catalogue launched

Catalogue-based services costs reduced

24x7 Security Operations Centre established
 
Monthly


1st quarter 2016-17



4th quarter 2016-17


$5m less than 2015-16


2nd quarter 2016-17

Drive a focus on customer service and grow our customer base
 
  • develop, adopt and publish a Customer Charter
  • equip all staff with the skills needed to engage successfully with customers
  • change our business model to allow customers to select which catalogue services they wish to consume
  • deploy more staff to work at customer sites and create opportunities for customer-based IT staff to work with us in our offices
  • establish a customer communications role within our Customer Engagement team
  • run an annual customer satisfaction survey and develop measureable KPIs to track satisfaction levels
  • engage directly with leaders of customers’ business units, and departmental ICT staff
  • assess opportunities to broaden our customer base across Victorian state and local government
 
Customer Charter available on our website

Customer communications role operating

Customer service training program being delivered across the organisation

Customer satisfaction survey completed

New customer consuming services
 
2nd quarter 2016-17


1st quarter 2016-17


Commencing 1st quarter 2016-17


3rd quarter 2016-17


4th quarter 2016-17

Build a high-performing and engaged organisation by investing in our people
 
  • recognise and value accountability and high performance
  • set targets for investment in training staff in managers’ performance plans
  • establish a rolling 18-months strategic Workforce Plan to better enable skills development and acquisition
  • implement a Leadership Development Program and create opportunities for coaching and mentoring leaders
  • implement a Graduate and Intern recruitment program to attract people with contemporary skills and outlooks
  • implement/report on the outcomes of our 2016 Staff Survey action plans and conduct a follow-up survey to measure change
  • implement a new online Performance Management process in response to staff feedback
 
18-month Workforce Plan established

Leadership Development Program initiated

Coaching and mentoring programs established

Staff Engagement and Alignment ‘Pulse’ Survey
 
3rd quarter 2016-17


1st quarter 2016-17


2nd quarter 2016-17


5% improvement in alignment and engagement skills

Embrace innovation and rapidly introduce new ICT services
 
  • provide new services including Office 365, cloud-based hosting and storage options
  • operate a $2m Innovation and Research fund, open to individual customers, to invest in new services that may benefit multiple customers
  • expand adoption of agile and lean methods to improve service delivery, promote experimentation, speed up time to market and reduce risk
  • roll out new technologies and selectively outsource services that are best provided by the market
  • update our Services Catalogue to include cloud-based services
  • develop a two-year Service Roadmap based on a customer demand profile and emerging technology solutions
  • engage with customers to enhance service reliability though investment in disaster recovery and business continuity planning.
 
Two-year Service Roadmap agreed with customers

Office 365, including mail, available as a choice for customers

Cloud-based services available in our Services Catalogue
 
2nd quarter 2016-17


3rd quarter 2016-17



1st quarter 2016-17